Mortgage rules aim to halt risky loans

Bottom line: Lenders must ensure people can afford what they borrow

6:41 PM,
Jan. 10, 2014

Richard Cordray

Written by

Julie Schmit
| USA Today

New mortgage-lending rules took hold Friday that federal regulators say will guard against the risky lending practices that contributed to the greatest collapse in U.S. home prices since the Great Depression. Here's a look at the rules, what they do and why they matter.

Q: What are the new rules, and where did they come from?

A: There are several terms to know. The first is the "ability-to-repay" rule. It was required by the 2010 Dodd-Frank financial overhaul legislation as a response to the financial crisis. The rule was crafted by the Consumer Financial Protection Bureau, which will ...